Video on demand, or otherwise known by its abbreviation ‘VOD’, is any content distribution service that allows viewers to consume video material without having to use a traditional video player. This provides consumers the freedom to select when, where, and how they watch the content. VOD is the most popular form of viewing TV and video nowadays, and also the most popular way for businesses to advertise and earn revenues through TV.
There are three subsets of VOD which are all used as different VOD business models to provide content to customers and earn revenue. So, without further ado, let us take a look at video on demand, it subsets, which is the best.
What is Video on demand?
Video on Demand simply refers to any video streaming platform with a library that allows consumers to choose the show or movie they wish to watch.
Video on Demand is not the same as linear programming, which is the conventional way of watching television, but it is now more popular among consumers – you’ll find VOD is used by practically all of today’s most prominent streaming services.
Advertisement based video-on-demand (AVOD)
Whereas the other VOD models require users to pay a fee to see a certain quantity of content, AVOD allows users to access the whole content collection for free, with no membership or one-time costs required. However, much like with traditional TV programming, viewers must wait through and watch advertisements before or during content.
Viewers must watch advertisements before or during the material broadcast on AVOD platforms. These, on the other hand, are frequently skippable or may be trimmed short. Unlike traditional broadcasts, ads that stream on AVOD platforms are typically targeted to the specific customer since they may access data through the internet.
To employ an effective AVOD model, consider AVOD services by Finecast for the best results.
Subscription video-on-demand (SVOD)
SVOD stands for ‘subscription video on demand’ and is the most popular VOD model among both consumers and marketers. It is an on-demand service in which you subscribe to a service and have access to it until the subscription expires. Most subscriptions are paid continuously and so only terminate when you unsubscribe, allowing you to watch any of the service’s movies and material anytime, whenever, and on nearly any device. Users can consume as much content as they like at a flat rate every month.
Transactional based video-on-demand (TVOD)
TVOD is a pay-per-view VOD strategy that replaces subscription fees with a pay-per-view system. Instead of having access to the whole collection of material, users may pick and choose the pieces of content they want to see, such as a film, episode, or TV series, and then pay to watch that episode or the entire season. Some content may not be available on any SVOD platforms; thus customers may have to pay a one-time price to see it through TVOD.
Examples of TVOD services include Sky Box Office, iTunes and Amazon’s video store.
The content delivery methods used by SVOD, AVOD, and TVOD all differ, but the fundamental purpose of each is to make income from streaming material. Choosing the best for your business requires you to have a good understanding of how each one works and how they each generate income, allowing you to make the most informed decision that suits all your needs.